IEA: OPEC counties fulfill OPEC+ oil cut deal 88%

IEA: OPEC counties fulfill OPEC+ oil cut deal 88%

Global supply and demand for crude oil will be largely balanced next year, as growth in consumption helps erode a three-year-old overhang of unused fuel and should mostly offset a steep rise in output, the International Energy Agency said in its monthly oil market report.

OPEC supply was little changed in September at 32.65 million bpd, but down 400,000 bpd from a year earlier, meaning the group’s compliance with its self-imposed 1.2-million-bpd output cut stood at 88% last month and 86% for the year to date, Reuters reported.

Russia reduced liquid hydrocarbon output by 318,000 barrels per day from October 2016 to 11.279 million barrels per day to fullfil an oil production cut agreement between OPEC and non-OPEC states by 106% in September and 78% in January-September.

The OPEC states increased crude output by 10,000 barrels per day on the month to 32.65 million barrels per day in September, and have reduced it by 1.04 million barrels pay day since October 2016 thus meeting the OPEC+ agreement 88%.

A rise in production in Libya and Iraq was offset by a decline in Venezuela.

The non-OPEC states fulfilled the agreement by 125% in September by cutting oil production by 685,000 barrels per day from October 2016. Crude output rose by 2,000 barrels per day on the month to 18.203 million barrels per day in September.

The IEA said it continues to see global demand for crude growing by 1.6 million barrels per day in 2017, before moderating to 1.4 million bpd in 2018.

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